Here at Simple Flying, we often write new agreements between airlines. From codeshares to joint ventures to interline agreements. There is a lot of collaboration between the carriers. But what are interline agreements and how are they different from other types of partnerships? The exact operation of this revenue participation agreement depends on the specific agreement, but the idea is that two airlines essentially act as one in a joint venture. Airlines benefit from an increase in turnover. Both airlines can offer an extremely competitive common fare that attracts customers for their respective routes. Long-distance airlines add additional passengers to their flights. The cash flow is also intended for the airline issuing the ticket, since the ticketing revenues for both airlines are recovered by the issuing airline. Internal accounting procedures process tickets through industry clearing bodies and the issuing airline then pays other airlines to travel on their routes on the basis of the interline share agreement. The agreement also simplifies customer claims in the event of baggage irregularities and provides an internal claims settlement system after retail settlement.
A codeshare agreement does not allow airlines to coordinate on prices and capacity. Today there are so many different types of agreements in the aviation sector. While the exact terms vary with each partnership, I think the simplest way to summarize it is that an interline agreement is like a friendship, a codeshare agreement like an engagement, a joint venture like a marriage, and an alliance is like a big family where everyone does their own thing. @Hung Nguyen: Just a word of caution. While QR has a line spacing agreement with VN, most of these agreements only apply if you are traveling with *one* ticket, but not with separate tickets. There may be exceptions, but I don`t expect to check luggage on separate tickets. The next step forward is a complete new joint venture. When airlines are in a joint venture, they become pretty much a large airline that, from flight planning to pricing, cooperates and shares revenues with each other. The details of how this type of agreement works are left to the airlines concerned.
Deeper partnerships provide for more exchanges, more cooperation and more strategic actions between the airlines concerned. These include codeshares and joint ventures. The term “code” refers to the identifier used in a flight plan, usually the two-digit IATA airline code and flight number. Xx224 (company flight number XX) can also be sold by YY as YY568 and by ZZ as ZZ9876. In this case, the YY and ZZ airlines are referred to as “marketing airlines” (sometimes abbreviated MKT CXR for “marketing carriers”). Most major airlines today have codeshare partnerships with other airlines, and codeshare is a key feature of large airline alliances. Typically, codeshare agreements are also part of commercial agreements between airlines in the same airline alliances. Passengers benefit from interline agreements from the point of view of cost and comfort. Many small and medium-sized cities offer a flight service, but often only offer flights to a larger hub airport, where a connecting flight takes them to their final destination. Fares between the small airport and the turnstile city can be high, but an interline ticket to the final destination is usually much cheaper than the sum of the two local fares. In addition, airlines automatically transfer baggage to the connecting airport. The agreements also apply to irregular transactions in which customers can be transferred free of charge to other airlines.
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